Frontier vs Spirit Airlines

Frontier Airlines and Spirit Airlines are two low-cost carriers that compete in the highly competitive airline industry. Both companies have seen significant growth in recent years, with Frontier Airlines focusing on expanding its route network and Spirit Airlines prioritizing cost control and efficiency. Investors may be drawn to Frontier Airlines' potential for growth and expansion, while Spirit Airlines' focus on cost-saving measures could make it an attractive investment option. Understanding the unique strengths and weaknesses of each company is crucial for investors looking to navigate the volatile airline industry.

Frontier or Spirit Airlines?

When comparing Frontier and Spirit Airlines, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Frontier and Spirit Airlines.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Frontier has a dividend yield of -%, while Spirit Airlines has a dividend yield of 30.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Frontier reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Spirit Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Frontier P/E ratio at -21.06 and Spirit Airlines's P/E ratio at -0.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Frontier P/B ratio is 2.59 while Spirit Airlines's P/B ratio is 0.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Frontier has seen a 5-year revenue growth of 0.62%, while Spirit Airlines's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -12.48% and Spirit Airlines's ROE at -63.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.76 for Frontier and $1.60 for Spirit Airlines. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. Spirit Airlines's prices fluctuated between $1.40 and $17.49, with a yearly change of 1149.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.